CapitaLand India Trust - Resilient 1HFY26 DPU despite weaker Indian Rupee

Stocks, REITs

By Gerald Wong, CFA • 03 Aug 2026

Global Wealth Technology Pte. Ltd. is regulated by the Monetary Authority of Singapore (MAS) as a licensed Financial Adviser.

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CapitaLand India Trust reported 1HFY26 distribution per unit grew 1.0% year-on-year to 4.0 Singapore cents. In Indian Rupees term, DPU grew a stronger 13.0% year-on-year as INR depreciated 12% against the SGD. Distributable income grew 7.7% year-on-year in 1H26 to S$64.2 million.

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Resilient 1HFY26 distribution per unit (DPU) despite weaker INR

1HFY26 distribution per unit grew 1.0% year-on-year to 4.0 Singapore cents. In Indian Rupees term, DPU grew a stronger 13.0% year-on-year as INR depreciated 12% against the SGD.

Distributable income grew 7.7% year-on-year in 1H26 to S$64.2 million.

With 2HFY25 DPU of 3.90 cents, the trailing twelve months DPU of 7.90 cents translates to a distribution yield of 7.5% based on the closing price on 31 July 2026.

To recap, CapitaLand India Trust maintains a distribution policy to pay at least 90% of the income available for distribution.

Positive performance driven by data centre and debt onshoring

Due to the sharp depreciation of INR, total property income and net property income fell 7.8% year-on-year and 5.4% year-on-year, respectively.

CapitaLand India Trust reported 7.8% year-on-year increase in distributable income, led by stronger operating performance form current portfolio and new asset. contribution from newly completed CapitaLand Data Centre Navi Mumbai Tower 1.

CapitaLand India also registered gains from higher interest income attributed to the forward-purchase pipeline.

The forward purchase programme is a key growth engine by providing consistent interest income and a visible pipeline of quality assets. As at 30 June 2026, the Trust has six forward purchase assets under developing. Interest bearing long-term receivables grew 9.5% year-to-date to S$417.9 million, making significant contribution to its interest income.

Portfolio performance remains resilient

Weighted average lease expiry (WALE) was relatively stable at 3.2 years on 30 June 2026, from 3.4 years as at 31 December 2025.

Asset under management as at 30 June 2026 decreased by 7.6% year-on-year to S$3.5 billion.

Committed portfolio occupancy was unchanged at 91% as at 30 June 2026. Occupancy at ITPC Chennai improved by +7 percentage point quarter-on-quarter to 95%. Management remains focused on increasing the occupancy, particularly at ITPB Bangalore, whose occupancy slipped 5 percentage point quarter-on-quarter to 92% following a large lease expiry.

The Trust achieved rental reversions of 24% over the last 12 months, led by robust demand from Global Capability Centres (GCCs). Hyderabad reported the strongest momentum and expected to continue in 2H 2026.

Updates on progress of data centre portfolio

In February 2026, CLINT completed the divestment of 20.2% stakes in three data centres under development to CapitaLand India Data Centre Fund for an estimated total purchase consideration of INR 7.02 billion (S$99.73 million).

The remaining data centres under development are on track for completion by end-2026.

Strong interest from multiple global and local prospective customers is driving active leasing discussions and site visits for the Hyderabad and Chennai data centres, providing confidence in potential leasing conversions.

CapitaLand DC Navi Mumbai Tower 1 (50 MW) — CLINT’s first liquid-cooled data centre — was fully handed over to its hyperscaler tenant in July 2026, with full income contribution to flow through from August 2026.

Tower 2 (55 MW), fully pre-leased to the same tenant, remains under construction. Together with CapitaLand DC ITPH and DC Chennai (95 MW under development), CLINT’s committed data centre pipeline totals 200 MW of power capacity.

The data centre portfolio is set to become a more meaningful earnings contributor from 2H FY2026 onward.

Healthy balance sheet

Gearing increased to 38.0% as at 30 June 2026, from 35.7% at end-March 2026. The proceeds from debt drawdown were used to fund ongoing development.

Interest coverage improved slightly to 2.9x, while the average cost of debt eased to 5.6% from 5.7%. As CapitaLand India Trust increased the proportion of onshore INR debt, the cost of debt is expected to increase slightly to 5.7% in 2H 2026.

About 74.5% of borrowings are on fixed rates, providing some protection against interest-rate volatility.

As at 30 Jun 2026, CapitaLand India Trust has ample debt headroom of S$1.08 billion, before reaching the 50% gearing limit. CapitaLand India Trust maintains adequate liquidity with S$313.7 million of available undrawn committed credit facility.

In order to diversify the funding sources and reduce cost of debt, the Trust has issued the first perpetual securities in July 2025, a $100 million subordinated perpetual bond at 4.4% p.a. In January 2026, the Trust has issued its first onshore bond in India.

Leveraging the lower interest rate environment in India, CLINT continued to onshore its debt to reduce interest and tax costs, which should improve cash flow and distributable income over the longer term.

In July 2026, CLINT drew down INR5.5 billion (c.S$74 million) of onshore financing. The latest term loan is expected to deliver 1.6% DPU accretion, based on FY2025 DPU.

As of 30 June 2026, INR onshore borrowings account for 29% of borrowings. CapitaLand India Trust plans to increase the proportion to 40- 50% in the next three to four years.

Maintain BUY and target price at S$1.36

Currently, CapitaLand India Trust is trading at S$1.06, implying trailing twelve months distribution yield of 7.5%.

CapitaLand India Trust trades at a price-to-book valuation of 0.88x, versus the peers’ average FY25 PB 1.0x.

CapitaLand India Trust on Beansprout’s REIT Income Pot framework

Although CLINT is structured as a business trust rather than a REIT, income investors can apply Beansprout's REIT screening framework - DPU growth, gearing, and yield versus risk-free alternatives - to assess whether it is right for an income-focused portfolio.

Check	CapitaLand India Trust
DPU growth – able to generate stable earnings	✅ Pass — 1HFY26 DPU 4.00 cents, +1.0% year-on-year
Aggregate leverage < 45%	✅ Pass — 38.0% as of 30 June 2026
Dividend yield > 5%	✅ Pass — 1HFY2026 trailing twelve months DPU 7.90 cents, distribution yield 7.5%
Overall	3/3 checks
Source : Beansprout

Check #1: DPU growth passed narrowly

1H FY2026 DPU of 4.00 cents was 1.0% higher year-on-year, and distributable income increased by 8% year-on-year.

The modest growth in DPU was due to the private placement of 124.2 million units in March 2026, equivalent to 8% increase in total number of units issued.

Going forward, management is not planning for unexpected issue of new units.

Check #2: Gearing ratio near our threshold level

Net gearing rose to 38.0% as at 30 June 2026, from 35.7% at end-March 2026, to fund ongoing development.

There is ample buffer from Beansprout's preferred 45% threshold, highlighting CLINT’s financial flexibility.

Check #3: Distribution yield versus risk-free rate offers a healthy spread

Trailing-twelve-month DPU of 7.90 cents (1H FY2026's 4.00 cents plus 2H FY2025's 3.90 cents), against the 31 July 2026 closing price of S$1.06, implies a distribution yield of 7.5%.

Currently, Singapore Saving Bond is offering about 2.1%. 6-month T-bill.

CLINT is trading at a spread of 5.4% to 5.9% over risk-free alternatives. This is above Beansprout's preferred minimum spread of about 3 percentage points, compensating investors for CLINT's gearing, geopolitical and commodity cost-pass-through risks.

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